Council Defends Employee Health Plan as Residents Demand a Cost Cap

Rancho Mirage's council used its comment period to push back on residents who say city employee health benefits cost taxpayers too much. Three critics answered with calls for a cap and a full expense review. The only formal action was a 5-0 approval of the consent calendar, while three incumbents head toward unopposed reelection on Nov. 3.

• Councilmember Steve Downs defends the employee health plan as mid-range among desert cities and locked in by a labor agreement

• Residents call for a cap on benefit costs, citing a self-insured plan that also covers deductibles

• Three unopposed incumbents draw praise from the dais and criticism from public commenters

• Consent calendar passes 5-0 after a resident calls the minutes "inaccurate and incomplete"

• Preparedness commission lays out a fall outreach plan ahead of a NOAA El Niño warning

1 Big Thing: The Health Plan Fight Comes to the Dais

Why it matters: The dispute is over how much taxpayer money funds employee benefits and whether the city can still recruit and keep staff. It is now a recurring flashpoint in public comment.

Where things stand: Councilmember Steve Downs responded directly to criticism raised at the prior council meeting. He argued that health coverage is one piece of a larger compensation package that also includes vacation, pension and salary.

"A healthcare benefit plan does not stand in isolation," said Downs.

He said Rancho Mirage's plan is competitive with eight other desert cities. "We're neither at the high end of the scale nor are we at the low end of the scale," Downs said.

Downs also pointed to the city's labor contract. A memorandum of understanding (MOU) is a negotiated agreement between a city and its employee union. Downs said "the city and that association have signed an agreement, a memorandum of understanding that outlines those comp plan elements," referring to the Rancho Mirage Employees Association.

The other side: During non-agenda public comment, public commenter Patrick Lowry pressed for limits. "You need to put a cap on healthcare costs. Employee benefit cost needs a cap," said Lowry.

His central complaint was the plan's structure. In a self-insured plan, the employer pays claims directly instead of buying a policy from an insurer. "You're paying 100% of the benefit plan, plus you're paying for deductibles, coinsurances, and so forth through a self-insured plan," Lowry said.

Public commenter Brad Anderson also questioned the cost of additional life insurance for employees and urged the city to review all of its expenses.

Decisions and stakeholder impacts: No vote was taken and no policy change was proposed. Downs' defense signals that the council does not plan to reopen benefits. Because the terms sit inside a signed MOU, any change would run through collective bargaining with the employees association, not a simple council vote.

The stakes are split:
- City employees and the association keep a package the council calls market-rate.
- Cost-focused residents are left without the cap they asked for.
- The council must still answer these critics while a sales tax increase is under discussion.

Under the city's rules, council members could not respond to commenters during non-agenda comment.

What's next: Expect the issue to keep returning in public comment. No future agenda item on benefits was announced.

No Challengers: Three Incumbents Run Unopposed

Why it matters: Mayor Lynn Mallotto, Councilmember Eve Fromberg Edelstein and Councilmember Steve Downs have no opponents in the Nov. 3 election. That raises questions about accountability and access to the ballot.

Where things stand: Councilmember Ted Weill congratulated all three. "I believe that your unopposed nomination reflects a degree of satisfaction," said Weill. Downs reminded voters that ballots go out by mail in early October.

The other side: Lowry called the council's annual mayoral rotation a coronation and objected to long tenures. "Eight years is enough, and we need a mayor," said Lowry.

Anderson said he missed the candidate filing window and alleged that it was not publicized.

Public commenter William Lindes took the opposite view of the rotation. "The mayor's office is transferred from one council member to another for one year only. I think that is an ingenious idea," said Lindes.

Decisions and stakeholder impacts: No action was taken. Without contested races, residents who want change have one main outlet: public comment.

What's next: Ballots mail in early October for the Nov. 3 election.

Consent Calendar Clears 5-0 Despite Accuracy Challenge

The basics: City Manager Isaiah Hagerman outlined four consent items:

• 5A: Minutes from the Sept. 3, 2026, meeting

• 5B: The Rancho Mirage Energy Authority's 2025 power source disclosure

• 5C: Contracts

• 5D: Demands, meaning the city's bills and payments

Where things stand: Anderson challenged the minutes before the vote. "I know the minutes are inaccurate and incomplete, and it may purposely be done that way to eliminate public participation in these meetings," said Anderson.

He said he had contacted the district attorney and urged the city to publicize its charitable giving to nonprofits. He also questioned about $800,000 in bond service payments and raised issues tied to the successor agency oversight board. Successor agencies manage the remaining obligations of California's dissolved redevelopment agencies.

Anderson framed his spending concerns around the city's sales tax push, saying scrutiny matters "especially when you're asking for a tax increase on sales tax."

Decisions and stakeholder impacts: The council approved the full calendar by voice vote without discussion (For: 5, Against: 0, Absent: 0). Individual votes were not called. The minutes, energy disclosure, contracts and payments all move forward. Anderson's complaint about the minutes stands as a possible basis for legal action.

Preparedness Push: "The Help Until Help Arrives"

Why it matters: Officials stressed that first responders are not staffed for a major earthquake or a Super El Niño storm. Residents need to be ready to handle the first hours on their own.

Where things stand: Mitch Brown, Chair of the Emergency Preparedness Commission, cited NOAA's El Niño warning. "You are the help until help arrives," said Brown.

He outlined the commission's fall and winter schedule:

• A Build a Go Bag event at Rancho Mirage Elementary on Oct. 2

• National Night Out

• Outreach to four senior housing communities

• The State of the City on Oct. 21

• An HOA disaster workshop on Nov. 9 at the library

• Sunnylands Disaster Preparedness Day

• A readiness seminar in February

The student cast of Seismic Survivors, a Rancho Mirage High School play that taught earthquake readiness, received a plaque. Mallotto urged the students to bring the lessons home, telling them "you're the messengers to your parents." The mayor also presented a National Preparedness Month proclamation to the commission's volunteers.

Decisions and stakeholder impacts: This was a recognition, not a vote. Seniors, HOAs and families with school-age children are the commission's main audiences this fall.

What's next: The Build a Go Bag event is Oct. 2, and the HOA workshop is Nov. 9.

Minor Items

• Larry Bohannon honored: Marketing Director Gabe Cotting presented a proclamation to the retired Desert Sun sportswriter, who covered golf and tennis for roughly 40 years. Cotting said "he always gave you a fair shake."

• Healthcare district candidate: CJ Taube, chief transformation officer at DAP Health, is running for Desert Healthcare District Zone 1. He said $650M in lease-purchase funds from Desert Regional/Tenet Health should reach nonprofits across the valley.

• Tree citation dispute: Public commenter Mitchell Krupa said a code enforcement officer cited nine allegedly dead pine trees without arborist certification. He called it "a wrongful and illegal destruction of private property."

• Resident grievance: Public commenter Susan Ragsdale alleged fraud and elder abuse by the city and said she plans to distribute a newsletter. The council did not respond, and the allegations were not substantiated.

• Closed session: The council met with legal counsel on one potential case of initiating litigation under Government Code Section 54956.9. The city attorney reported no reportable action, and the meeting adjourned at 3:06 p.m.

Looking Ahead

• Sept. 29: Last day for the free shade tree program with CAL FIRE, the Arbor Day Foundation and the U.S. Forest Service.

• Oct. 2: The Certified Farmers Market returns to Rancho Mirage Community Park on Fridays.

• Hunger Action Month: Mayor Pro Tem Michael O'Keefe and Mallotto also promoted a Lifestream blood drive and the Regional College and Career Fair at Agua Caliente Resort. Mallotto noted FIND Food Bank serves 4,629 Rancho Mirage residents a year.